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Wednesday, 06 September 17
LAYTIME - CHARTERERS' RIGHTS & PORT COSTS - NORTH P&I CLUB
KNOWLEDGE TO ELEVATE
In a recent London Arbitration decision (18/17) the Tribunal had to consider whether the owners were entitled to recover additional expenses incurred in complying with charterers’ orders to stop loading operations.
The Facts
The vessel was voyage chartered for a voyage from the USA to Venezuela. Upon arrival at the load port, loading commenced. When charterers became aware of this they ordered the loading to stop. Loading did not then recommence until four days later. Owners claimed from charterers the additional dockage, security and guards’ expenses incurred as a result of the four day interruption to loading.
The Load Port Expenses
In respect of the additional load port expenses, the Tribunal held that the allocation of such expenses would usually fall to owners under the charterparty terms. This was because the charterers were entitled to use the laytime as they wished and so it followed that the associated expenses had to lie where they fell, i.e. with the owners. However, the Tribunal accepted evidence from the owners that an oral agreement had been reached between the owners and the charterers that charterers had agreed to pay the owners’ invoice in full, which included the additional port expenses. It was, therefore, as a result of this additional oral agreement that the Tribunal ordered the charterers to pay the additional port expenses to the owners. Without this oral agreement, which changed the terms of the charterparty, the owners would not have received any compensation for the additional load port expenses incurred as a result of the four day delay.
A Reminder
It is worth reminding owners that charterers do have an absolute right to use the given laytime as they see fit. There is no duty on them to load or discharge faster than the given laytime. Therefore, if a charterer orders the vessel to stop cargo operations when laytime is running, the port expenses incurred during the stop will usually be for owners. This is unless a specific clause (or additional oral or written agreement on this point) can be agreed between the owners and the charterers to the contrary.
Source: North of England P&I Club
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- IHS Mccloskey Coal Group - USA
- Rashtriya Ispat Nigam Limited - India
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- Bulk Trading Sa - Switzerland
- Latin American Coal - Colombia
- Trasteel International SA, Italy
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- Jindal Steel & Power Ltd - India
- Power Finance Corporation Ltd., India
- Wilmar Investment Holdings
- Makarim & Taira - Indonesia
- Ambuja Cements Ltd - India
- Larsen & Toubro Limited - India
- Malabar Cements Ltd - India
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- Krishnapatnam Port Company Ltd. - India
- Port Waratah Coal Services - Australia
- Agrawal Coal Company - India
- Minerals Council of Australia
- Salva Resources Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Global Coal Blending Company Limited - Australia
- Siam City Cement - Thailand
- Karbindo Abesyapradhi - Indoneisa
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- Bukit Baiduri Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- ASAPP Information Group - India
- The University of Queensland
- Indo Tambangraya Megah - Indonesia
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- Madhucon Powers Ltd - India
- GAC Shipping (India) Pvt Ltd
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- Simpson Spence & Young - Indonesia
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- Electricity Generating Authority of Thailand
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- Siam City Cement PLC, Thailand
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- Energy Link Ltd, New Zealand
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- Barasentosa Lestari - Indonesia
- PTC India Limited - India
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- Global Green Power PLC Corporation, Philippines
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- Planning Commission, India
- Thai Mozambique Logistica
- Global Business Power Corporation, Philippines
- Star Paper Mills Limited - India
- Gujarat Sidhee Cement - India
- Ministry of Transport, Egypt
- India Bulls Power Limited - India
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Directorate Of Revenue Intelligence - India
- Indian Oil Corporation Limited
- Therma Luzon, Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Indonesian Coal Mining Association
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- Georgia Ports Authority, United States
- Lanco Infratech Ltd - India
- Parliament of New Zealand
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- Coal and Oil Company - UAE
- Mercator Lines Limited - India
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- Asmin Koalindo Tuhup - Indonesia
- TeaM Sual Corporation - Philippines
- Bangladesh Power Developement Board
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- Samtan Co., Ltd - South Korea
- Sical Logistics Limited - India
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- Iligan Light & Power Inc, Philippines
- Bhoruka Overseas - Indonesia
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- Eastern Energy - Thailand
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Chamber of Mines of South Africa
- Romanian Commodities Exchange
- Essar Steel Hazira Ltd - India
- Aboitiz Power Corporation - Philippines
- IEA Clean Coal Centre - UK
- Medco Energi Mining Internasional
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- Videocon Industries ltd - India
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- White Energy Company Limited
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- San Jose City I Power Corp, Philippines
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- Semirara Mining and Power Corporation, Philippines
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- Alfred C Toepfer International GmbH - Germany
- Bharathi Cement Corporation - India
- Petron Corporation, Philippines
- Altura Mining Limited, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Australian Coal Association
- New Zealand Coal & Carbon
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- SMC Global Power, Philippines
- Ministry of Finance - Indonesia
- Economic Council, Georgia
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- Singapore Mercantile Exchange
- Sarangani Energy Corporation, Philippines
- Marubeni Corporation - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
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- Antam Resourcindo - Indonesia
- Independent Power Producers Association of India
- The State Trading Corporation of India Ltd
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- Intertek Mineral Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Africa Commodities Group - South Africa
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- Borneo Indobara - Indonesia
- Sree Jayajothi Cements Limited - India
- Renaissance Capital - South Africa
- Sinarmas Energy and Mining - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Globalindo Alam Lestari - Indonesia
- Electricity Authority, New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kepco SPC Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
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- Tamil Nadu electricity Board
- Directorate General of MIneral and Coal - Indonesia
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- Baramulti Group, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Xindia Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- Attock Cement Pakistan Limited
- Coastal Gujarat Power Limited - India
- Binh Thuan Hamico - Vietnam
- VISA Power Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- Eastern Coal Council - USA
- Jorong Barutama Greston.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coalindo Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- ICICI Bank Limited - India
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- Mjunction Services Limited - India
- Heidelberg Cement - Germany
- Goldman Sachs - Singapore
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- European Bulk Services B.V. - Netherlands
- Kapuas Tunggal Persada - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Wood Mackenzie - Singapore
- Rio Tinto Coal - Australia
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